Cadbury analysis

INTRODUCTION OF ORGANIZATION

About CadburyType Subsidiary of Kraft

FoodsIndustry ConfectioneryFounded Birmingham, UK (1824)Headquarters Cadbury

House, London, United Kingdom

Products See list of Cadbury products

Revenue £5,384 million (2008)Operating income £388 million (2008)Net income £364 million (2008)Employees 71,657 (2008)Parent Kraft FoodsWebsite Cadbury.co.uk

Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury

creates a global powerhouse in snacks, confectionery and quick meals. 

With annual revenues of approximately $50 billion, the combined company is the world's second largest food company, making delicious products for billions of consumers in more than 160 countries. We employ approximately 140,000 people and have operations

in more than 70 countries. 

Our core purpose "make today delicious" captures the spirit of what we are trying to achieve as a

business. We make delicious foods you can feel good about. Whether watching your weight or preparing to

celebrate, grabbing a quick bite or sitting down to family night, we pour our hearts into creating foods

that are wholesome and delicious. 

visionThe Barrow Cadbury Trust’s vision is of a peaceful, equitable society, free from discrimination and

based on the principle of social justice for all.

mission"Cadbury’s mission

statement says simply: ‘Cadbury means quality’; this is our promise. Our reputation is built upon

quality; our commitment to continuous improvement

will ensure that our promise is delivered’

objective• to make lots of chocolate.

•improve the quality of their chocolate.

•To Survive in the market.

•Have loads of stores worldwide

to be an ongoing company.

Achieve revenue growth of 20% per year

Increase earnings by 15% annually

Increase dividends per share by 7% per year Increase net profit margins 8% to 4%

History o

f

Cadbury

Cadbury's as we know it today started from humble beginnings in Bull Street, Birmingham. A shop was opened by John Cadbury in 1824. It did not start as a confectionery shop but sold

tea and coffee and home made drinking chocolate or cocoa which he made himself for

his customers.

John Cadbury moved into the manufacturing of drinking chocolate and cocoa. By the early 1840's Cadbury operated from a factory in

Bridge Street and went into partnership with his brother Benjamin. 'Cadbury Brothers of

Birmingham'

Cadbury's received a Royal Warrant in 1854 as manufacturers of chocolate for Queen Victoria.

Cadbury's moved on to become a limited company and after the death of Richard Cadbury the sons of the two brothers joined the firm headed by George Cadbury. This was very much a family business in every sense of the word.

In 1969 the Cadbury Group merged with Schweppes. Cadbury Schweppes Plc is a leader in confectionery and soft drinks both in the UK and abroad. With factories all over the world and a host of well known brand names it has become a household name in many countries.

Introduction of members

CEOTodd Stitzer

CHAIRMAN OF THE BOARDRoger Carr

DIRECTORS Raymond Viault, Ellen Marram , Sanjiv Ahuja, Guy Elliott, Chris Patten, Colin Day, Wolfgang Berndt, Baroness Hogg

CEO

CHAIRMANOF THEBOARD

DIRECTORS

SALES CFO HUMAN RESOURCES

LEGAL ANDSECRETARY

SCIENCEAND

TECHNOLOGY

HIERARCHY

OF ORGANIZATIO

N

INTRODUCTION OF DEPARTMENT

There are many different functional departments all created to help the company in its organizational methods. There are many different departments involved with Cadbury's.•Marketing and Sales • Finance • Administration and IT support • Operations • Research and Development • Production • Customer Services • Human Resources

MARKETING DEPARTMENT

•Marketing activities and strategies result in making products available that satisfy customers.

•Focus on what the customer wants is essential to successful marketing efforts. This customer-orientation must also be balanced with the company's objective of maintaining a profitable volume of sales in order for the company to continue to do business.

•Providing the features and quality customers want is a critical first step in marketing and is important for CS, so that the marketing department can meet the objectives of Cadbury. 

PRODUCTS OF CADBURY

Cadbury Freddo

BARSCADBURY FREDDO

Chocolate's more fun when it's frog-shaped.

CADBURY CURLY WURLY

Imagine a chewy caramel ladder. Now drape it in thick milk chocolate.

CADBURY BRUNCH

Cadbury Brunch Bar is a favourite with consumers.

CADBURY SNACK

Cadbury Snack has a strong heritage in the Irish Market.

cakes and biscuitsCADBURY CELEBRATION CAKE WITH BUTTONS

CADBURY DIGESTIVE BISCUITS

CADBURY CAKE BARS

CADBURY MINI ROLLS

CADBURY FINGERS

CADBURY CAKE FUDGE BITES

CADBURY HALF COATED MINI ANIMAL BISCUITS

BOXES, BAGS AND TINSCADBURY

HEROES

CADBURY MILK TRAY

CADBURY DAIRY MILK TASTERS

CADBURY BUTTONS

CADBURY KOKO

DRINKSCADBURY HOT CHOC CHUNKS

CADBURY HIGHLIGHTS

CADBURY DRINKING CHOCOLATE

CADBURY HOT CHOCOLATE INSTANT

BOURNVILLE COCOA

ICECREAM AND DESSERTSFLAKE 99

CONE

CDM STICK

CADBURY TWIN POTS FLAKE

CADBURY CHOCOLATE TRIFLE

ADBURY CHOCOLATE MOUSSE

STRATEGIES OF

CADBURY

Product strategyWe have the competitive advantage that is our quality. It is recognized throughout the world and our product is a convenience product.  

Promotion strategy: We can distinguish ourselves from the competitors on the following criteria:Important: as we are the first one launching nuts coated with chocolate .and due to winter season it will serve as a good product to our target market.Communicable: yes the difference is communicable to the buyers through our advertisements on TV and billboards.

Affordable: as the result of a survey the prices set are economical.

Positioning strategy:More for the same: As we are offering the same quality same taste at a economy price. Brand strategy:We will position our brand at its attributes that is its innovative ingredient and good taste. And strong beliefs and values as Cadbury’s have many loyal customers. The product name is Enticing Treats means a mouth watering treat which is simply irresistibleThe brand is licensed and is a international brand.

Pricing strategy Our pricing strategies are as follows Weight Prices 20gm pack, Rs.1050 gm Pack, Rs.30150 gm Pack, Rs.90350 gm Tin, Rs.175500 gm Tin, Rs.350 And it is concluded from the survey that customers by looking this price chart have accepted the prices and called it as an economical.

4 Ps OFCADBURY

Place 

Cadbury dairy milk is produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced and has undergone all the quality checks it is transported to the stockrooms. After this Cadbury sells it products to shopsthat deal with beverages and confectionery e.g. corner shops, super stores. They then sell it to the general public. Cadbury produces chocolate for more than 200 countries so that they have a chance to enjoy it as well and make profit.

Product My product is a re-launch of Cadbury dairy milk. Cadbury dairy milk is made from real chocolate.   Its ingredients include cocoa butter and there is a glass and half full cream dairy milk in every 200 grams of Cadbury dairy milk chocolate, Cadbury buys 65 million litres of fresh milk each year to make Cadbury dairy milk chocolate.

Price   Price is an important element of the marketing mix. The price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine whether or not Cadbury Schweppes will make a profit.

Promotion                                       

The purpose of promotion is to communicate directly with potential or existing customers, in order to encourage them to purchase dairy milk and recommend it to others.

SWOT ANALYSIS OF

CADBURY

Strengths• Maintain a stable growth of a company, • With its brand name, Cadbury could counterattack the competitors.

• Keep up with the financial strength by increasing its sales and profit.

• Acquisition rules in UK, reduce its dependence on the UK market.

• Overall, Cadbury has been successful through the new products (development) it has to offer.

WEAKNESSES•Weak position in the US market.

•Lack of distribution network.

•Total French production of chocolate bars and confectionary has slowed down in more recent years, partly due to the economic slump.

•Consumption of chocolate products, fall in demand due to the gloomy economic situation.

•Sales of milk chocolate bars, which account for 24 per cent by volume of total sales of chocolate bars, decreased by 3.7 per cent.

Opportunities•Through its confectionary product line, to build viable positions in prioritized markets.•Cadbury has other opportunities to have market development in Russia and China. •This company is also at the same time distributing its products via the internet – Develop Gourmet Line.•Besides developing the “Low Calorie” line of chocolates and sweets, they also offer the “Sugar Free” sweets line.•Therefore in order to get the product into a new foreign market, France, Cadbury would have good opportunities in store for them.

Threats•The company should take note of the changes in the consumer’s buying trend.•price wars would occur between its competitors like Mars, Hershey and Nestle.•There would be seasonal sales slumps all year round which will reflect to an increase in cost of the raw materials needed.•Cadbury would then have to be prepared for growth of small local gourmet chocolates and regional candy manufacturers.•Also to be aware of the cost of packaging materials as it has increased over time.•Increase Marketing and Promotion globally by marketing products in emerging markets.

SEGMENTATIONOF

CADBURY

GEOGRAPHIC SEGMENT

DEMOGRAPHIC SEGMENT

BEHAVIORAL SEGMENT

PSYCHOGRAPHIC SEGMENT

GEOGRAPHICREGION:Chocolates are everybody’s favourate so there is no limit of region , it is used all over the world.COUNTRIES: Perhapes categorized by size , development and membership of geographic region.CLIMATE: Northern n southern.

DEMOGRAPHIC

AGE: 5-60GENDER: Male/FemaleFAMILY LIFE CYCLE: Young, Single, Married, OlderINCOME: As concluded from the survey that our prices are economical so everyone can afford it.EDUCATION: Grade school or less, some high school, high school graduate, college graduate.

PSYCHOGRAPHICAttitude towards the product: the attitude towards our product is positive as people are very in trusted in our new product.Life Style: Thoseare willing to experiment with alternateproducts in place of conventional food items, as the universe of chocolateconsumption is changing from occasion led to more casual consumption.

Occasions:-We are targeting special occasions like New Years Eve and Valentines Day . Eid etc. Benefits: - We are providing good quality product at economical prices. Keep the customers fitness in mind we are providing chocolate coated with nuts which will have a low calorie count.

Usage Rate: The user rate is heavy in the behavioral segmentation of Cadbury dairy milk.  

BEHAVIORAL

COMPETITORSOF

CADBURY

Within Chocolate, it's interesting that Cadbury is a very small player outshone by

Nestle, M&M Mars (now called Master foods)and

Hershey.

Cadbury is a distant 4th. But, in Canada & Europe, Cadbury is a huge player - perhaps 2nd. This is because Cadbury Schweppes is British based and hence has a much larger presence in Europe, Canada & Australia.

CONCLUSION:In order for Cadbury to reach the peak of achievement, the company would have to

stress on the global growth of the product. It can be a risk to market it in the region France,

but with careful study of the target market segments and its economic position, it can be an attainment. Cadbury should also look into other countries like the Asia Pacific in order to market its products popular globally. But then

again, careful considerations to look at its major competitors and to obtain the rules and

regulations of a certain country are equally important.

THANKYOU

Presented by:Vikrant Chauhan